L DISCLOSURE REQUIREMENTS FOR ADVERTISING - California Department of ...

STATE OF CALIFORNIA

DEPARTMENT OF REAL ESTATE

LICENSE DISCLOSURE REQUIREMENTS FOR ADVERTISING

RE 559 (Rev. 5/19)

The following chart shows the required disclosures of licensure for real estate-related advertisements. For a chart showing the required

disclosures of licensure for mortgage loan-related advertisements, please refer to License Disclosure Requirements for Mortgage

Advertising, form RE 858. Pertinent Real Estate Law referred to includes Business and Professions Code (B&P) and Regulations of

the Real Estate Commissioner (Regulation).

Questions?

If you have questions, please call the Enforcement section at (877) 373-4542.

Advertising

Ads and

Solicitation

Materials

Required Disclosures

Display Requirements

Pertinent

Real Estate

Law

Media

Name(s)/Designation/

Phrasing

DRE License Number

Related to

Government

Lands

All*

Name of broker

-ANDstate that the broker is licensed

as a real estate broker by the

State of California

8-digit license number of each

licensee in the advertisement

Print Ads**

Newspapers, periodicals, mail

Broker, agent, Realtor, loan

correspondent or abbreviations

bro., agt., or other similar terms

or abbreviations

Note: Please see ¡°First Point of Contact Solicitation Materials¡±

guidance below, as well as footnote ** below, re: additional required

disclosures

B&P

10140.6(a);

Regulation

2770.1

First Point of

Contact

Solicitation

Materials

(Including

Print Ads)

Business cards, stationery,

flyers, television ads, print ads

(newspapers, periodicals, etc.),

electronic media ads (internet,

radio, cinema, video, audio,

etc.), brochures, leaflets, etc.,

mail (regular & email), for sale,

rent, lease, open house, and

directional signs

Licensee name ***

-ANDbroker¡¯s name

8-digit license number of each

licensee in the

advertisement***

------------8-digit license number of the

broker (optional)

Font size of the license number

must not be less than the

smallest font size used in the

advertisement and solicitation

materials

B&P

10140.6(b);

Regulation

2773

All*

Fictitious business name

-ANDsalesperson's name

-ANDbroker's name

8-digit license number of the

salesperson

----8-digit license number of the

broker (optional)

Broker's name (and license

number, if included) must be

equally as prominent as the DBA

-ANDsalesperson's name and license

number must be conspicuous

B&P 10159.5,

10159.7

All*

Team name

-ANDa licensed team member¡¯s name

-ANDbroker's name

8-digit license number of the

salesperson

----8-digit license number of the

broker (optional)

Team name and salesperson's

name and license number must

be conspicuous and prominent

-ANDbroker's name (and license

number, if included) must be as

prominent and conspicuous as

the team name

B&P 10159.6,

10159.7

Contain a

SalespersonOwned DBA

Contain a

Team Name

Font size of the license number

must not be less than the

smallest font size used in the

advertisement and solicitation

materials

B&P 10140.5,

10140.6(b);

Regulation

2773

* Refers to any advertising and solicitation materials, including first point of contact materials.

** Print ads must contain a designation, pursuant to 10140.6(a) of the Business and Professions Code and Section 2770.1 of the Commissioner¡¯s

Regulations. Print ads are also first point of contact solicitation materials and must disclose, in addition to a designation, the licensee¡¯s name

and license number and the broker¡¯s identity, pursuant to Section 10140.6(b) and Regulation 2773.

*** Does not apply to ¡°for sale¡±, rent, lease, ¡°open house¡±, and directional signs that display the responsible broker¡¯s identity only and does not

identify or reference an associate broker or licensee. Note: This exception does not apply if using a team name or salesperson-owned dba or the

advertising and solicitation materials are related to government lands.

RE 559

Page 2 of 4

PERTINENT CODES & REGULATIONS

Business and Professions Code

10015.4. ¡°Responsible broker¡¯s identity¡± means the name under

which the responsible broker is currently licensed by the

department and conducts business in general or is a substantial

division of the real estate firm, or both the name and the

associated license identification number. ¡°Responsible broker¡¯s

identity¡± does not include a fictitious business name obtained

pursuant to paragraph (2) of subdivision (a) of Section 10159.5 or

the use of a team name pursuant to Section 10159.6.

Disclosure of Name

10140.5. Each advertisement or other statement which is

published by a real estate broker or salesman offering to assist

persons to file applications for the purchase or lease of, or to

locate or enter upon, lands owned by the State or Federal

Government shall, when published, indicate the name of the

broker for whom it is published and state that the broker is

licensed as a real estate broker by the State of California.

Disclosure of Licensed Status in Advertising

10140.6. (a) A real estate licensee shall not publish, circulate,

distribute, or cause to be published, circulated, or distributed in

any newspaper or periodical, or by mail, any matter pertaining to

any activity for which a real estate license is required that does

not contain a designation disclosing that he or she is performing

acts for which a real estate license is required.

(b) (1) A real estate licensee shall disclose his or her name,

license identification number and unique identifier assigned to

that licensee by the Nationwide Mortgage Licensing System and

Registry, if that licensee is a mortgage loan originator, and

responsible broker¡¯s identity, as defined in Section 10015.4, on

all solicitation materials intended to be the first point of contact

with consumers and on real property purchase agreements when

acting in a manner that requires a real estate license or mortgage

loan originator license endorsement in those transactions. The

commissioner may adopt regulations identifying the materials in

which a licensee must disclose a license identification number

and unique identifier assigned to that licensee by the Nationwide

Mortgage Licensing System and Registry, and responsible

broker¡¯s identity.

(2) For purposes of this section, ¡°solicitation materials¡± include

business cards, stationery, advertising flyers, advertisements on

television, in print, or electronic media, ¡°for sale,¡± rent, lease,

¡°open house,¡± and directional signs, and other materials designed

to solicit the creation of a professional relationship between the

licensee and a consumer.

(3) Nothing in this section shall be construed to limit or change

the requirement described in Section 10236.4 as applicable to real

estate brokers.

(c) This section shall not apply to ¡°for sale,¡± rent, lease, ¡°open

house,¡± and directional signs that do either of the following:

(1) Display the responsible broker¡¯s identity, as defined in

Section 10015.4, without reference to an associate broker or

licensee.

(2) Display no licensee identification information.

(d) ¡°Mortgage loan originator,¡± ¡°unique identifier,¡± and

¡°Nationwide Mortgage Licensing System and Registry¡± have the

meanings set forth in Section 10166.01.

(e) This section shall become operative on January 1, 2018.

Fictitious Name

10159.5. (a) (1) Every person applying for a license under this

chapter who desires to have the license issued under a fictitious

business name shall file with his or her application a certified

copy of his or her fictitious business name statement filed with

the county clerk pursuant to Chapter 5 (commencing with Section

17900) of Part 3 of Division 7.

(2) A responsible broker may, by contract, permit a salesperson to

do all of the following:

(A) File an application on behalf of a responsible broker with a

county clerk to obtain a fictitious business name.

(B) Deliver to the bureau an application, signed by the

responsible broker, requesting the bureau¡¯s approval to use a

county approved fictitious business name that shall be identified

with the responsible broker¡¯s license number.

(C) Pay for any fees associated with filing an application with a

county or the bureau to obtain or use a fictitious business name.

(D) Maintain ownership of a fictitious business name, as defined

in paragraph (2) of subdivision (a) of Section 10159.7, that may

be used subject to the control of the responsible broker.

(b)(1) A salesperson using a fictitious business name authorized

by subdivision (a), shall use that name only as permitted by his or

her responsible broker.

(2) This section does not change a real estate broker¡¯s duties

under this division to supervise a salesperson.

(c) A person applying to a county for a fictitious business name

pursuant to subdivision (a) may file his or her application in the

county or counties where the fictitious business name will be

used.

(d) Advertising and solicitation materials, including business

cards, print or electronic media and ¡°for sale¡± signage, using a

fictitious business name obtained in accordance with paragraph

(2) of subdivision (a) shall include the responsible broker¡¯s

identity, as defined in paragraph (1) of subdivision (a) of Section

10159.7, in a manner equally as prominent as the fictitious

business name.

(e) Notwithstanding subdivision (b) of Section 10140.6,

advertising and solicitation materials, including print or electronic

media and ¡°for sale¡± signage, containing a fictitious business

name obtained in accordance with paragraph (2) of subdivision

(a) shall include the name and license number of the salesperson

who is using the fictitious business name.

(f) Notwithstanding Section 10185, a violation of this section is

not a misdemeanor.

RE 559

Page 3 of 4

Team Name - Requirements

Commissioner¡¯s Regulations

10159.6. All of the following apply to use of a team name, as

defined in paragraph (3) of subdivision (a) of Section 10159.7:

2770.1. Advertising - License Designation.

(a) Notwithstanding subdivision (b) of Section 10140.6,

advertising and solicitation materials that contain a team name,

including print or electronic media and ¡°for sale¡± signage, shall

include, and display in a conspicuous and prominent manner, the

team name and the name and license number of at least one of the

licensed members of the team.

(b) The responsible broker¡¯s identity shall be displayed as

prominently and conspicuously as the team name in all

advertising and solicitation materials.

(c) The advertising and solicitation materials shall not contain

terms that imply the existence of a real estate entity independent

of the responsible broker.

(d) Notwithstanding Section 10185, a violation of this section is

not a misdemeanor.

Fictitious and Team Names - Definitions

10159.7. (a) For the purposes of this article, the following

definitions shall apply:

(1) ¡°Fictitious business name¡± means a professional identity or

brand name under which activity requiring a real estate license is

conducted and the use of which is subject to approval by the

department pursuant to Section 10159.5.

(2) ¡°Ownership of a fictitious business name¡± means the right to

use, renew, and control the use of a fictitious business name

obtained in accordance with Section 10159.5.

(3) ¡°Team name¡± means a professional identity or brand name

used by a salesperson, and one or more other real estate licensees,

for the provision of real estate licensed services. Notwithstanding

any other law, the use of a team name does not require that a

separate license be issued for that name pursuant to Section

10159.5. A team name does not constitute a fictitious business

name for purposes of this part or any other law or for purposes of

filing a fictitious business name statement with an application as

required by subdivision (a) of Section 10159.5 if all of the

following apply:

(A) The name is used by two or more real estate licensees who

work together to provide licensed real estate services, or who

represent themselves to the public as being a part of a team,

group, or association to provide those services.

(B) The name includes the surname of at least one of the licensee

members of the team, group, or association in conjunction with

the term ¡°associates,¡± ¡°group,¡± or ¡°team.¡±

(C) The name does not include any term or terms, such as ¡°real

estate broker,¡± ¡°real estate brokerage,¡± ¡°broker,¡± or ¡°brokerage¡±

or any other term that would lead a member of the public to

believe that the team is offering real estate brokerage services,

that imply or suggest the existence of a real estate entity

independent of a responsible broker.

(b) Nothing in this section changes a real estate broker¡¯s duties

under this division to supervise a salesperson.

Use of the terms broker, agent, Realtor, loan correspondent or the

abbreviations bro., agt., or other similar terms or abbreviations, is

deemed sufficient identification to fulfill the designation

requirements of Section 10140.6(a) and (c) of the Business and

Professions Code.

Use of the terms and abbreviations set forth above does not

satisfy the requirements of Sections 10235.5 and 17539.4 of the

Code.

2773. Disclosure of License Identification Number on

Solicitation Materials - First Point of Contact with

Consumers.

(a) A real estate broker or salesperson, when engaging in acts for

which a license is required, shall disclose its, his or her eight (8)

digit real estate license identification number and responsible

broker¡¯s name as currently licensed, and may, but is not required

to, also include the responsible broker¡¯s license identification

number, on all solicitation materials intended to be the first point

of contact with consumers. If the name of more than one licensee

appears in the solicitation, the license identification number of

each licensee shall be disclosed. The license identification

numbers of responsible brokers or corporate brokers whose

names, logos or trademarks appear on solicitation materials along

with the names and license numbers of salespersons or broker

associates do not need to appear on those materials. If the

advertising is in written form, the type size of the license

identification number shall be no smaller than the smallest size

type used in the solicitation material.

Solicitation materials intended to be the first point of contact with

consumers, and in which a licensee must disclose a license

identification number, include the following:

(1) Business cards;

(2) Stationery;

(3) Websites owned, controlled, and/or maintained by the

soliciting real estate licensee;

(4) Promotional and advertising flyers, brochures, postal mail,

leaflets, and any marketing or promotional materials designed to

solicit the creation of a professional relationship between the

licensee and a consumer, or which is intended to incentivize,

induce or entice a consumer to contact the licensee about any

service for which a license is required;

(5) Advertisements in electronic media (including, without

limitation, internet, email, radio, cinema, and television

advertisements, and the opening section of streaming video and

audio);

(6) Print advertising in any newspaper or periodical; and

(7) ¡°For sale,¡± ¡°for rent,¡± ¡°for lease,¡± ¡°open house,¡± and

directional signs that display the name of the licensee.

(b) No license identification number is required where a ¡°for

sale,¡± ¡°for rent,¡± ¡°for lease,¡± ¡°open house,¡± or directional sign has

no name, trademark, or other branding of a real estate licensee, or

where the only licensee identified is a responsible broker as

defined in Business and Professions Code Section 10015.4.

RE 559

(c) ¡°Advertisements in electronic media¡± that constitute a first

point of contact solicitation are those advertisements that a

licensee purchases or directly places on an electronic platform,

where the licensee controls the content and presentation of the

advertisement, and which include information that is intended to

enable consumers to directly contact the licensee. Instances where

another party controls the content and visual presentation of the

licensee¡¯s information on a platform are excluded from

¡°advertisements in electronic media,¡± except where the licensee

subsequently adopts the content and presentation of the content

by distributing or forwarding the advertisement to a consumer.

Page 4 of 4

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